No federal law prevents Pesce from forming a PAC or soliciting money for it. And he doesn’t have to tell unsuspecting donors he’s an inmate at Taylorville Correctional Center, having scammed a woman out of nearly $100,000.

Pesce’s situation is the latest reminder of a nagging problem with political committees: While most PACs follow the rules, there are few safeguards against hucksters looking to make a buck.

With some PACs, “people donating think it’s a legitimate organization, but sometimes the creators take your money and run,” said Brett Kappel, a Washington, D.C., campaign finance lawyer.

“There is no rule that a PAC is barred from buying a boat and riding off into the sunset,” added Brendan Fischer, associate counsel at the Campaign Legal Center.

As a practical matter, that makes it close to impossible for a misled political donor to recover his or her money.

To print the document, click the “Original Document” link to open the original
PDF. At this time it is not possible to print the document with annotations.

A message the Center for Public Integrity sent to an email address Pesce provided in paperwork filed with the Federal Election Commission was not returned. The prison where he’s an inmate doesn’t allow reporters to contact inmates by phone unless they appear on a pre-approved list.

Creating a federal political committee is relatively simple: just fill out a few forms and submit them to the FEC.

It isn’t clear from Pesce’s FEC paperwork whether he meant to create a traditional PAC, which may give limited amounts of money directly to political candidates’ campaigns, or a super PAC, which may raise unlimited amounts of money to independently promote political campaigns. Pesce won’t be required to reveal until mid-summer whether his PACs have raised and spent any cash.

Either way, this is at least the second political group created by an inmate in as many years.

Two years ago, the Center for Public Integrity reported that Adam Savader, a former political volunteer who had been convicted of cyberstalking and extortion, created a super PAC named Second Chance PAC. Savader’s super PAC ultimately reported raising no money.

June 30, 2015

The FEC has fined Peterson’s PAC, and agency officials confirmed Tuesday that this fine remains unpaid. There’s little evidence indicating Peterson’s PAC used more than a token amount of the money it raised to promote Sanders’ bid for the Democratic presidential nomination. Where the rest of the money it raised went remains a mystery.

And last year, the FBI arrested Peterson on unrelated criminal fraud charges related to his business ventures. The Securities and Exchange Commission also has a civil complaint pending against Peterson alleging multiple counts of securities fraud.

Some government officials have attempted to address these so-called “scamPACs” — groups that solicit money using the names of candidates but then spend little or no money on politics.

For example, the oft-gridlocked FEC, whose commissioners agree on almost nothing, have nevertheless been united in asking Congress for more authority to deal with scam PACs.

But to date, Congress has ignored the FEC’s requests.

Unscrupulous PACs could continue to hoodwink less sophisticated donors, commissioners and campaign finance experts say, as efforts to tighten PAC rules and increase oversight have so far failed.

March 15, 2016

In other words, the FEC can’t really do much to shut down these groups, even if they do have the mailing address of a state prison, as is the case with Pesce’s PAC.

(Update: 10:51 a.m., April 7, 2017:The FEC on April 6 sent Pesce a letter asking him to verify the accuracy of his “Impeach the Assole” PAC filing. The letter reminds Pesce that it’s illegal to “knowingly and willfully” make a “materially false, fictitious, or fraudulent statement or representation to a federal government agency” and asks him either verify the accuracy of his PAC filing, amend any false information or withdraw the filing. Pesce has until May 6 to respond.)

In 2004, Pesce stole $93,534 from a woman by falsely presenting himself as a commodities trader, according to a DuPage County, Illinois, press release. Pesce pleaded guilty to theft by deception but fled before he was sentenced in absentia to 10 years in prison.

Illinois Department of Corrections spokeswoman Nicole Wilson said inmates are permitted to receive money electronically. And while Illinois corrections law prohibits inmates from “engaging in an unauthorized business venture,” it’s silent on the specific issue of inmates forming political committees.

Pesce “would be wholly responsible for complying with any laws and regulations governing political action committees,” Wilson said.